Banks and non-banking financial companies (NBFCs) in India have the potential to achieve an EV financing market size of Rs. 40,000 crores (US$5 billion) by 2025 and Rs. 3.7 lakh crores (US$ 50 billion) by 2030, according to report by NITI Aayog, RMI, and RMI India
NITI Aayog, RMI, and RMI India outlines the importance of priority sector recognition for retail lending in the electric mobility ecosystem.
The report provides considerations and recommendations to inform the inclusion of EVs in Reserve Bank of India's (RBI's) priority sector lending (PSL) guidelines.
"However, retail finance for EVs has been slow to pick up. "Financial institutions have an important role to play in accelerating the adoption of EVs in India and supporting the decarbonisation of road transport," stated Amitabh Kant, CEO, NITI Aayog.
"Priority sector lending can encourage banks to fast-track India's transition to EVs and help achieve our 2070 climate goals," said Clay Stranger, Managing Director, RMI.
(With inputs from ANI)
